Entrepreneurship - Group 3 - 2024

Recognize and Understand the Market GROUP 3 - ENTREPRENEURSHIP  Value Proposition (VP) Is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service. This statement is often used to convince a customer to purchase a particular product...

Recognize and Understand the Market GROUP 3 - ENTREPRENEURSHIP  Value Proposition (VP) Is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service. This statement is often used to convince a customer to purchase a particular product or service to add a form of value to their lives. In creating Value Proposition, entrepreneurs will consider the basic elements : Target Costumer Needs / Opportunity Name of the product Name of the enterprise/company  There are many competitors in the market to establish superiority to them. Entrepreneurs should think some alternative and how it works better. An important aspect in Value Proposition must be truthful that will establish credibility to the consumers. Example: Potential value proposition is most common in small businesses of your locality.  Aling Charing Sari-sari Store open only from 6:00 am to 6:00 pm, but Aling Charing noticed that there are customers who go nearby town to look for a convenience store at around 10:00 pm to 6:00 am. She believes that this is a great opportunity for her store to operate 24/7. In this example, proposed value proposition: “Charing Sari-sari Store, opens 24/7”. The business describes sari-sari store – a basic retail store. The assurance from this value proposition is because of the phrase “opens 24/7”, Aling Charing Sari-sari Store opens 24/7, which make it different from other competitors.  Unique Selling Proposition (USP) Refers to how you sell your product or services to your customer. You will address the wants and desires of your customers. As entrepreneur, you think of marketing concept that persuade your target customers. The following questions you may ask in doing this, What the customers want? What brand does well? What your competitor does well?   Some tips for the entrepreneur on how to create an effective unique selling proposition to the target customers: Identify and rank the uniqueness of the product or services character Very Specific Keep it short and simple (KISS)  As entrepreneur, present the best feature of your product or services that are different from other competitors. Identifying the unique selling proposition requires marketing research that you will learn from the other modules. In promoting your products or services, make sure that it is very specific and put details that emphasize the differentiator against the competitors. Keep it short and simple and think of a tagline that is easy to remember. Right now, the proposed unique selling proposition: “Charing Sari- sari Store, opens 24/7”.  Readers get confused between value proposition and unique selling proposition. The two propositions are used to differentiate the products from competitors. For example, Jollibee is known to have a Filipino taste burger. This brand has a unique selling point because of its tagline “Langhap Sarap” Unique Value Proposition and Value Proposition are two most famous tools used to explain why prospect customers buy each products and services. Base on each definition, we learn that USP and VP are frameworks of each business industry. The two propositions are valuable for the entrepreneurs.   A.Target Market Market Targeting is a sage in market identification process that aims to determine the buyers with common needs and characteristics. Prospect customers are market segment that entrepreneurial venture intends to serve. In targeting a specific market, it will exclude people even if it will not fit your criteria. Rather, target marketing allows you to focus your marketing money and brand message on a specific market that is more likely to buy from you than other markets. Product is more affordable, efficient, and effective way to reach potential clients and generate business.  Commonly used methods for segmenting the market are follows. 1. Geographic segmentation -the total market is divided according to geographical location. Variable to consider : a. Climate b. Dominant ethnic group c. Culture d. Density (either rural or urban) Commonly used methods for segmenting the market are follows. 2. Demographic Segmentation - divided based consumers. Variable to consider : a. Gender b. Age c. Income d. Occupation e. Education f. Religion g. Ethnic group h. Family size Commonly used methods for segmenting the market are follows. 3. Psychological Segmentation - divided in terms for customers think and believe.Variable to consider : a. Needs and wants b. Attitudes c. Social class d. Personality traits e. Knowledge and awareness f. Brand concept g. Lifestyle Commonly used methods for segmenting the market are follows. 4. Behavioral Segmentation - divided according to customers behavior pattern as they interact with a company. Variable to consider : a. Perceptions b. knowledge c. Reaction d. Benefits e. Loyalty f. Responses  B. Customer Requirements Customer requirements are the specific characteristics that the customers need from a product or a service. There can be two types of customer requirements : 1. Service Requirement 2. Output Requirement  Service Requirement: Intangible thing or product that is not able to be touched but customer can feel the fulfillment. There are elements in service requirement like on-time delivery, service with a smile, easy- payment etc. It includes all aspects of how a customer expect to be treated while purchasing a product and how easy the buying process goes.  Output Requirements: Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product. Costumer that will avail services as a product, then various service requirements can take the form of output requirements. For example, if the consumer hires a multi cab, then on-time arrival becomes an output requirement. Customer buys gadgets (phone speaker), the specification like the loudness and clarity are the output requirements.  C. Market Size Entrepreneur’s most critical task is to calculate the market size, and the potential value that market has for their startup business. Market research will determine entrepreneur possible customers in one locality. What is Market Size? Market size is like a size of arena where the entrepreneurs will play their business. It is the approximate number of sellers and buyers in a particular market. Companies are interested in knowing the market size before launching a new product or service in the area. In determining the market size, entrepreneur will conduct a strategic marketing research from reliable sources using the following method. First step is to estimate the potential market – approximate number of customers that will buy the product or avail your services. Second step is to estimate the customers who probably dislike to buy your product or avail the services. Third step is for the entrepreneur to estimate the market share, that means plotting and calculating of the competitor’s market share to determine the portion of the new venture. Market size become the most important if you ever need to raise funding for your business. Thank You!